(China Daily / Xinhua)
Updated: 2007-08-31 09:39

It prohibits monopolies from using their dominant status in the market to curb competition, fix prices, enforce package sales, and refuse or enforce trade.

The law states that "an anti-monopoly commission will be set up under the State Council to deal with anti-monopoly issues".

The law also stipulates that "government departments should not take advantage of their power to curb competition", and prohibits governments from appointing producers or suppliers for unit or individual procurement.

Two major foreign chambers, the European Union Chamber of Commerce in China and the American Chamber of Commerce in China yesterday hailed the law as a positive step in the country's evolution as a market-based economy.

"The European Chamber welcomes a more open economy and a level playing field for business in China," Joerg Wuttke, president of the trade body, said.

"Most important, curbing monopolistic behavior should allow Chinese consumers to benefit from greater economic efficiency and stronger protection against the abuse of market dominance."

The chairman of AmCham-China, James Zimmerman, described the law as a "defining moment in the development of China's legal system, which establishes a basic framework to build a fair, uniform and national competition law system that benefits consumers by recognizing and preserving the incentives to compete."

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